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HMV to sell VAT-free games in-store

Will cut 17.5 per cent off the price.

High-street shop HMV will soon begin selling games in-store without charging VAT.

HMV Delivers will let shoppers use kiosks to order games, CDs, DVDs and Blu-ray films without paying the UK Treasury tax of 17.5 per cent, according to The Guardian.

It's thanks to a cheeky loophole many online retailers already take advantage of, including HMV.com and others such as Jersey-based Play.com. This allows you to snip the VAT charge when importing products under GBP 18 into the UK from outside the European Union. The UK Treasury set this up to minimise burden on marginal trade.

When you use the terminals the product will be shipped free from tax haven Guernsey, where lots of cows live. HMV has promised the items on sale will be restricted to things you cannot get on shelves, like out-of-stock games.

The retailer said it made GBP 50 million from VAT-free sales last year, which equates to a loss of around GBP 8.75 million to the tax man.

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About the Author

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Robert Purchese

Senior Staff Writer

Bertie is senior staff writer and Eurogamer's Poland-and-dragons correspondent. He's part of the furniture here, a friendly chair, and reports on all kinds of things, the stranger the better.

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